80-90% OF NEW TRUCKING COMPANIES FAIL EACH YEAR
We can help you beat the odds!
The Redford Agency, a professional transportation insurance provider, and MJN, a trusted name in transportation brokerage and factoring have teamed up to provide you with the financial and risk management tools you need to ensure your profitability.
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What are 5 primary factors that cause trucking companies to fail?
Lack of Strategic Partnerships
Running your own business is fraught with unexpected challenges. Don’t try to go it alone. We can help you implement financial strategies that will assist you in dealing with the challenges you face. Why not access a team of transportation professionals to help you run your business.
Often, businesses fail because they don’t anticipate operational expenses. In trucking, a major repair or the inability to pay for insurance can drive a company out of business. By utilizing escrow accounts and other financial tools, we can help you budget for the unexpected.
Lack of Cash Flow
Most new trucking companies are undercapitalized. They count on customers paying them on a timely basis for their services. For any number of reasons, this may not happen. When it doesn't happen, it can negatively impact the company’s ability to purchase fuel and pay drivers. It also limits their ability to expand operations without first developing a substantial cash reserve. Factoring can provide you with ready cash to meet these needs.
Trucking companies assume that if they have an insurance claim, their insurance will cover the loss. That is often not the case. There may be exclusions in the policy for certain types of freight. Claims may be denied because they are not properly documented. There may be insufficient coverage amounts. Without proper coverage, carriers leave themselves vulnerable to financial loss. Having a professional insurance agent who will make sure you have comprehensive coverage, and also who will advocate for you in the event of a claim is crucial.
Moving high risk freight, failing DOT inspections, alienating customers, not checking credit, neglecting equipment maintenance, and not implementing safe driving policies are just some of the problems caused by inexperienced management. We can help you establish policies and procedures that will assist you in dealing with these challenges.
Let us help keep you on the road.
Our team is standing by to help you with your needs.